The 0.3% month-on-month drop, calculated by Reuters based on data released by the National Bureau of Statistics, extended a weak trend that has persisted since May 2023. Prices fell 0.2% on month in May.
On an annual basis, new home prices in June declined 3.2%, versus a 3.5% drop in May.
The property sector, which accounted for about a quarter of economic activity prior to its meltdown roughly four years ago, remains a drag on economic growth. That has complicated policymakers’ efforts to achieve a target of “around 5%” GDP growth amid factory-gate deflation, subdued consumer demand and geopolitical tensions with the United States.
The State Council, China’s cabinet, pledged in a meeting on June 13 to conduct a nationwide survey of land for development and property projects under construction to enhance policy effectiveness.
Current measures to support the sector include enabling debt-laden developers to sell housing inventories and undeveloped land to local governments, promoting urban village redevelopment, and reducing mortgage rates and down-payment requirements to stimulate demand. Cities across the country have also relaxed homebuying curbs and eased restrictions on housing provident fund programmes for individual mortgages.